Barclays Alleges Funds of UK’s MFS ‘Fraudulently Circulated’ Among Firms

Barclays Plc said cash looks to have been “fraudulently circulated” around Market Financial Solutions Ltd.’s network of companies “on a massive scale,” as creditors to the collapsed mortgage firm try to track down missing funds.

An entity backed by Banco Santander SA to help provide bridge loans sent £235 million ($317 million) to one owned by Paresh Raja, the founder of the collapsed lender, according to written arguments presented at the High Court on Thursday.